Shop & Establishment License

The Shops and Establishment act makes sure that both organized and unorganized sectors are providing appropriate working conditions to the labourers. An applicant (Establishment) has to file an online application concerning his state’s official portal.

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Shop & Establishment License

Most of the businesses in India, including shops, restaurants, cafes, etc., are regulated under the provisions of the Shop and Establishment Act. To regulate the work environment and to ensure the rights of the workers are being protected, it is mandatory to get your business registered under the Shop and Establishments Act. However, the rules and regulations vary from state to state in; which the Act aims at providing proper working conditions to the labourers and taking care of their holidays, wages, and rights.

As per the Act, the establishment includes shops, commercial establishments, residential hotels, restraint, eating houses, theatres, or other places of public entertainment and also those establishments as notified by the State government in the official gazette.

 A shop means any place or premises where goods are sold and services rendered to customers. It includes store-rooms, go-downs, warehouses or workplaces other than a factory, commercial establishment or other places used for public amusement and entertainment. The License is issued to the following establishments: –

  • Business,
  • Trade,
  • Professions registered under the Shop and Establishment Act.

Eligibility to Obtain a Shop and Establishment License in India

  • Wholesalers or the retailer’s shops and establishments
  • Service Centres
  • Warehouses, Storerooms, and go-downs
  • Additionally, any other working places
  • Hotels
  • Eateries and restaurants
  • Entertainment houses, Amusement parks, Theatres, etc.Bottom of Form

Benefits of Obtaining Shop and Establishment License

  • Legal Recognition

the Shops and Establishment license provides legal recognition to the respective establishment/shop.

  • Acts As A Business Proof

For further business registrations in India, the Shops and Establishment license acts as a business proof.

  • Helpful In Opening The Bank Accounts And Other Formalities

The registration of Shops and Establishments becomes necessary for reasons like opening a bank account in the name of an establishment/shop.

  • Provides A Platform For Raising New Investment

The Shops and Establishment license helps the proposed entrepreneur in raising investments through loans or venture capital for the proposed business establishment.

  • Avails The Government Benefits

By getting the shop and establishment license, the entrepreneur can avail of the government benefits in a different stage of business.

  • Saves Time

As the process of shop act registration has turned online, it saves time in the registration procedure as well as creates less hectic while in operation.

Documents required for obtaining the Shop and Establishment License

Below-mentioned documents are required for Shop and Establishment License-

  • Id proof such as Aadhar card/PAN card/ voter identification card/ driving license of the employer.
  • Passport size photograph of the employer
  • The Affidavit, Cancelled cheque, and Bank statement,
  • A photo of the establishment/ shop along with the employer
  • In the case of rented property, a copy of the rent agreement
  • Any utility bill of the working premises.

Other Documents Required As Per The Establishment Or Business Entity

  • In the case of a trust, a list of the number of trustees
  • Certificate of incorporation, MOA, and AOA as per the Companies Act,
  • In the case of co-operative societies, a list of the number of members and chairman
  • Partnership deed with all the important information such as the name of the partners along with their signature and share percentage of partners.

Documents required for obtaining the Shop and Establishment License

Below-mentioned documents are required for Shop and Establishment License-

  • Id proof such as Aadhar card/PAN card/ voter identification card/ driving license of the employer.
  • Passport size photograph of the employer
  • The Affidavit, Cancelled cheque, and Bank statement,
  • A photo of the establishment/ shop along with the employer
  • In the case of rented property, a copy of the rent agreement
  • Any utility bill of the working premises.

Other Documents Required As Per The Establishment Or Business Entity

  • In the case of a trust, a list of the number of trustees
  • Certificate of incorporation, MOA, and AOA as per the Companies Act,
  • In the case of co-operative societies, a list of the number of members and chairman
  • Partnership deed with all the important information such as the name of the partners along with their signature and share percentage of partners.

Penalties for Shop and Establishment Act

It is compulsory for the entire establishment under the Act to obtain Shop and Establishment registration and comply with all the rules and regulations prescribed under the Act.

However, in case of any failure in getting registration and following the rules and regulations of the Act, the establishment would be liable to pay the penalty. The amount of penalty would vary from state to state.

Aspects Regulated as per the Provisions of the Shop and Establishments Act

The Shop and Establishment Act has made various provisions to regulate the aspects relating to the working of shops and establishments in India. Following are Some Key Aspects Regulated by them: –

  • Maximum working hours of the employees/ labours
  • Time duration allotted for meals and rest
  • Regulating laws to prohibit child labour in factories and other establishments
  • Women employment
  • Number of compulsory weekly holidays provided to the employees
  • Close/off days of the establishments/shops
  • Opening and closing hours of the establishments/shops
  • Wages to employees for the holidays
  • Accident’s coverage policies
  • Preventive measures against fire
  • Proper ventilation and lighting for workers
  • Clean and hygienic premises for the workers
  • Conditions and timing for the payment
  • Regulation of deductions on the payments
  • Leave Policy
  • Dismissal
  • Employee’s proper record keeping

Note: More information related to the Shop and Establishment Act can be gathered on the relative state government portal.

ApkaTax Procedure for Shop and Establishment License

  • Purchase a Plan for Expert Assistance
  • Add queries regarding Shop and Establishment License
  • Provide Documents to CorpBiz Expert
  • Prepare application for Shop and Establishment license + complete all admissibility criteria for preliminary screening
  • Complete Procedural actions for Shop and Establishment License
  • Shop and Establishment License at your Doorstep.

Frequently Asked Questions

Form 483 is issued when the FDA officials at the conclusion of inspection observe some conditions which are in violation of FDA guidelines. FDA officials are required to mention all the observations in Form 483 clearly, specifically and significantly.

Form 483 of FDA notifies the management of the company about the objectionable conditions. After the conclusion of the inspection, Form 438 is presented and discussed with the senior management of the company. The management of the company is encouraged to respond to Form 438 in writing. The Form should include the correct action plan. The implementation of the action plan should be done expeditiously.

After the inspection, Form 438 is discussed with the management of the company. The observation of FDA officials in Form 438 is read and discussed for a complete understanding of what observations are and what they mean.

All the colour additives need prior FDA approval before being used in drugs, food or cosmetics. The Colour Certification of FDA is given for batches of colour which are manufactured for use on/in human beings and animals. At designated facilities, the thorough analysis of colour batches is done, and the FDA issues the FDA Colour Certificate.

The validity period of the Certification of FDA is one year from the date of the initial issue of the certificate. The validity period of FDA Certification can be increased based on a request from the company.

A delay in processing the entry of the food or drug products by FDA will be caused in case there is a failure in providing the entry documentation.

To sell and distribute tobacco product, the manufacturers should receive a written order from the FDA. The written order from the FDA does not indicate that the tobacco product is safe or approved by the FDA. The marketing order means that the manufacturer has complied with all requirements to bring the product in the market.

The Local FDA office at the entry of port should be contacted if there are any questions regarding the submission of documents.

The entry documents can be provided to the FDA in the following ways:

  • The documents can be uploaded into ITACS (Import Trade Auxiliary Communication System). The documents can be uploaded by the customs broker, importer, or any other responsible party; or
  • Find the contact page of import office and look for local import division postal address, email address and/or fax number for the submission of documents.

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